Indecision Looms as Nifty Extends Losing Streak

The Nifty index extended its decline for the eighth consecutive session, closing at 24,611.10, down 0.10% on Monday. The index slipped below the previous session’s low, suggesting that earlier support levels are gradually losing strength.

On the daily chart, a bearish candle with shadows on both ends indicates indecision among market participants. However, on a broader timeframe, the September monthly chart still shows a gain of 0.75%, providing some cushion against recent weakness.

Technical Overview: Nifty

• Key Levels:
  
  
  • Current close: 24,611.10
    
    
  • Support: 24,500 → 24,400 (prior swing low)
    
    
  • Resistance: 24,820
    
    
• Indicators:
  
  
  • Nifty is trading just below the 78.6% Fibonacci retracement level of 24,620
    
    
  • The index remains beneath its short- and medium-term moving averages with negative crossovers
    
    
  • RSI at 38, signaling diminishing strength
    
    

A sustained break below 24,500 could drag the index lower toward 24,400, while a close above 24,820 is essential for any meaningful reversal.

For now, Nifty is expected to move within an expanded range, with the trend remaining bearish until a clear reversal pattern emerges on the hourly chart.

Technical Overview: Bank Nifty

The Bank Nifty closed at 54,635.85, up 0.32%, forming a small green candle after a volatile session. On a monthly scale, the index has managed a gain of 1.83%, but the recent corrective leg has kept it subdued near short-term averages.

• Support Levels:
  
  
  • Immediate support at 54,400
    
    
  • Breakdown could extend weakness toward 54,300 – 54,200
    
    
• Resistance Levels:
  
  
  • Strong barrier at 54,900 – 55,050
    
    
  • A close above this zone is necessary to revive upward momentum
    
    
• Indicators:
  
  
  • RSI at 45, recovering modestly but still below the neutral zone
    
    
  • MACD remains in a negative crossover, indicating limited strength
    
    

The broader monthly gains reflect resilience, but the daily outlook remains weak, with a cautious undertone until key resistances are reclaimed.

Key Takeaways for Traders

1. Nifty Outlook: Watch for 24,500 support; a breakdown could extend declines to 24,400. Resistance stands firm at 24,820.
   
   
2. Bank Nifty Range: Support at 54,400; resistance at 54,900–55,050 remains critical.
   
   
3. Indicators Signal Weakness: RSI and MACD continue to suggest limited momentum on both indices.
   
   
4. Short-Term Trend: Bearish bias remains intact until a clear reversal pattern emerges.
   
   
5. Trading Strategy: Traders should maintain caution with strict stop-losses and avoid aggressive long positions until Nifty closes above 24,820.